Article 6 - Types of vendor Master

Article 6 - Types of vendor Master


Article 6: What are different party types (PI, GS) in vendor master?

What are party types in vendor management?

Party types define different business functions a vendor can serve in your transactions.

Main party types:

PI (Invoicing Party):

  • What it is: The entity that sends you invoices
  • When different: When billing is centralized (e.g., regional office handles invoicing)
  • Example: You buy from Local Warehouse but get invoiced by Corporate Headquarters

GS (Goods Supplier):

  • What it is: The physical location where goods are shipped from
  • When different: When supplier has multiple warehouses
  • Example: You order from ABC Company but goods ship from their Chicago warehouse

When do I use different party types?

  • Same location: All parties are the same (most common)
  • Centralized billing: PI differs from main vendor
  • Multiple warehouses: GS differs based on shipping location

How to set up different parties:

  1. Create main Business Partner (vendor)
  2. Create separate BP for invoicing party (if different)
  3. Create separate BP for goods supplier (if different)
  4. Link them in purchase orders as needed



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